AutoCanada Exits U.S. Market with Kia of Lincolnwood Sale
Event summary
- AutoCanada completed the sale of Kia of Lincolnwood for $13.4 million in cash, including $6.3 million for real estate.
- The dealership generated $53.0 million in sales and a net loss of $1.6 million in 2025.
- Total gross proceeds from U.S. asset sales reached $62.4 million, with expectations to hit the high end of the $115 million to $130 million range.
- AutoCanada secured a covenant amendment, increasing the Total Funded Debt to Bank EBITDA ratio from 4.0x to 4.5x through June 30, 2026.
The big picture
AutoCanada's exit from the U.S. market aligns with its strategy to strengthen its balance sheet and focus on its Canadian operations. The sale of Kia of Lincolnwood is part of a broader divestiture plan aimed at reducing debt and improving financial flexibility. The amended debt covenant reflects ongoing support from lenders, providing the company with additional breathing room as it navigates its strategic shift.
What we're watching
- Execution Risk
- Whether AutoCanada can sustain the pace of U.S. dealership divestitures to meet its high-end proceeds target.
- Financial Flexibility
- How the amended debt covenant will impact AutoCanada's ability to manage its revolving credit facility.
- Market Strategy
- The strategic focus on strengthening its Canadian operations post-U.S. exit.
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